Rain's margin falls 3.30 points as costs outpace revenue
Consolidated revenue rose 6.17% QoQ, but expenses grew 10.47%, dragging net profit down 28.65%.
Filed 06 Nov 2026, 20:08 IST · after market close · Rain Industries Ltd (RAIN)
Key takeaways
- Revenue rose +6.17% QoQ, but expenses grew +10.47%, narrowing operating margin by 3.30 percentage points to 15.36%.
- Net profit fell -28.65% QoQ to Rs 243.28 cr as operating profit declined -12.58% and interest expense increased +5.90%.
- Rain's 15.36% operating margin remained 2.53 percentage points above the median for 137 reported commodity peers.
Price around the results
Costs erased operating leverage
Rain's consolidated revenue increased +6.17% QoQ, but expenses rose faster at +10.47%, leaving operating profit down -12.58% to Rs 842.78 cr. That cost-revenue mismatch reduced operating margin from 18.66% in Q1FY27 to 15.36% in Q2FY27, a decline of 3.30 percentage points. Net profit consequently fell -28.65% to Rs 243.28 cr.
Interest added to the earnings squeeze
Interest expense increased +5.90% QoQ to Rs 266.19 cr, adding to the pressure from weaker operating profit. The tax rate also rose by 0.10 percentage points to 32.05%. Other income contributed 9.94% of pre-tax profit, providing some support but not dominating the earnings result.
Margin stayed above the commodity-peer median
Rain's 15.36% operating margin was 2.53 percentage points above the 12.83% median among 137 commodity peers that had reported the quarter. The sequential comparison still shows a marked deterioration from Q1FY27's 18.66% margin.
Results filed after market close
Rain filed its consolidated Q2FY27 results after market close on 6 November 2026. The market response was therefore not yet established in this report.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹5,486 cr | ₹5,167 cr | +6.17% |
| Other income | ₹36 cr | ₹33 cr | +7.62% |
| Expenses | ₹4,643 cr | ₹4,203 cr | +10.47% |
| Operating profit | ₹843 cr | ₹964 cr | -12.58% |
| Operating margin (%) | 15.36% | 18.66% | — |
| Interest | ₹266 cr | ₹251 cr | +5.90% |
| Depreciation | ₹254 cr | ₹245 cr | +3.87% |
| Profit before tax | ₹358 cr | ₹501 cr | -28.55% |
| Tax | ₹115 cr | ₹160 cr | -28.32% |
| Net profit | ₹243 cr | ₹341 cr | -28.65% |
| EPS (₹) | ₹6.26 | ₹8.81 | -28.94% |
Operating margin of 15.36% compares with a Commodities sector median of 12.83% across 137 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 15.36% after the 3.30-percentage-point QoQ decline.
- Whether expense growth falls below the +10.47% QoQ rate and moves closer to revenue growth of +6.17%.
- Whether interest expense stays below Rs 266.19 cr and the tax rate below 32.05%.